Most states now use Partnership for Long-Term Care to encourage people to purchase long term care insurance (LTCI), which takes some of the burden off of state Medicaid budgets. LTCI Partnership policies provide coverage for middle income people while leaving them still eligible for Medicaid even if they use up all of their long term care insurance.
A solution resulting from a coalition of insurance companies, government organizations and nonprofits, LTCI Partnership policies protect some of the holders’ assets from the Medicaid requirement that the recipient be legally destitute before receiving Medicaid benefits.
When a long term health partnership policy holder purchases up to $350,000 in benefits, that policy owner can then retain that amount in cash or personal assets and still qualify for Medicaid assistance. This means that if the LTCI Partnership policy holder should need long term care for an extended period of time, that person will have a way to cover costs that Medicaid doesn’t pay.
What Long Term Care Insurance Partnership Policies Offer?
- You can choose from two types of policies:
- Benefits only cover care delivered in a nursing home or care facility.
- Covers care delivered in a nursing home or care facility, home care or community facility.
- If you purchase a policy in one state but need the benefits in another state your plan will be honored.
- While you are receiving benefits in a nursing home your premiums are waived.
If you already have long term care coverage and are interested in a Partnership policy, you can probably trade your original policy for Partnership coverage, so check with the provider.
Check Your State to See If You Qualify
Most but not all states allow LTCI Partnership plans and each state’s Medicaid and insurance requirements differ, so talk to the long-term care insurance provider to see if a partnership plan is available to you.
To learn more about long term care insurance coverage, visit our Long Term Care Health Insurance Quotes page.